Insurance Industry: Travel Premiums

Lord Kirkhope of Harrogate Excerpts

Tuesday 28th June 2022 Lords Chamber

[Baroness Penn (Con)]

There are several elements to that. It is for the market to determine the provision but, if that market is not functioning, it is for the regulator to take action; if it is not functioning properly, that is what we expect the regulator to do. I pointed to one example where the regulator acted in needing to signpost consumers to alternative providers if the insurer it had approached could not provide reasonable cover. The role of the Government is to look at policy; that is where the Financial Inclusion Policy Forum comes in—we work with the market and the regulator to ensure that we get the right outcomes.

[Lord Kirkhope of Harrogate (Con)]

My noble friend should surely be concerned about this level of age discrimination, which applies not only in this field but particularly in that of car hire. I understand that some good drivers over the age of 70 are being denied the opportunity to hire a car, the reason given being a failure to obtain insurance. Is this not unacceptable, bearing in mind the statistics on the safe driving of older drivers?

[Baroness Penn (Con)]

Age can be a risk factor in the provision of insurance. It is right for the market to take that into account but, where there are examples of discrimination that go beyond assessment of the risk factor, that is for the FCA to consider as the regulator of the market.